Indonesian Rate Cut

May 5, 2009

Bank Indonesia lopped off another 25 basis points from its key interest rate to 7.25%.  Such was the sixth reduction since December 4th from a peak of 9.5%.  Similar to the prior easing, today’s statement projected 3.4% growth in GDP this year and inflation hovering near the floor of its 5-7% target range.  Since the central bank rate remains well above expected inflation, more rate cuts seem probable.

Copyright 2009 Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.


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